USD/CAD keeps its bullish stance intact – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, reiterated the bullish perspective on the pair in the near term horizon.

Key Quotes

“Near term domestic risk is limited ahead of Tuesday’s speech from BoC Gov. Poloz as investors look position themselves into Wednesday’s much-anticipated FOMC policy decision. The broader-tone appears dominant and CAD continues to trade in line with oil prices while ignoring the 2Y U.S.-Canada yield spread”.

“Signals are broadly bullish across a range of both trend and momentum indicators. Recent congestion appears to have emerged around 1.32 with notable support under 1.3150 and resistance near 1.3250”.

“We look to a break of 1.3250 and the 200 day MA (1.3260) followed by gains toward 1.33 around the first major Fibonacci retracement level (38.2%) of the January-May decline”.